Veteran transport company seeks buyer: 31 million shekel debt

The veteran transport company "VIP Lux Travel", which has been operating since 2004 and employs about 100 workers, recently applied to the District Court for a temporary stay of proceedings and the appointment of a settlement manager, after accumulating debts of about 31 million shekels.

The company, which provides transport services to institutions, schools, and tourism, is seeking court protection to negotiate a debt settlement with its creditors, while simultaneously working to locate a potential buyer who will save its operations and maintain the livelihoods of employees and suppliers, according to a report by Calcalist.

According to the company and shareholder Felix Yan, the crisis began despite the fact that until recently it functioned as a stable and profitable business. The collapse was caused by a combination of external security circumstances—including the "Iron Swords", "With a Lion's Heart", and "Lion's Roar" operations—which created a cash crunch due to delayed payments from customers totaling about 9.6 million shekels.

In addition, last July the company suffered a heavy blow when it fell victim to criminal activity: three vehicles were stolen from the company's fleet, one of them was torched and located in the Bedouin diaspora, and two others were smuggled into Ramallah and their traces were lost.

The application was filed through attorneys Lirom Sanda and Elad Chen, who noted that the goal of the move is to prevent the liquidation of the company. According to them, a settlement under legal protection will allow for a higher dividend return to creditors, while maintaining the company as a "going concern" that continues to provide service.

Company attorneys Lirom Sanda and Elad Chen responded:

"In the past year, following the complex security situation and its broad effects on the economy, the company experienced temporary cash flow difficulties—a challenge faced by tens of thousands of companies and business owners in Israel."

They continued:

"Out of full responsibility towards the company's creditors, employees, suppliers, and customers, and out of complete belief in its ability to rehabilitate and recover, the company chose to act transparently and apply to the court for a stay of proceedings and a debt settlement. This step is intended to create a controlled and protected platform that will allow for the formulation of a fair outline for the distribution of resources and repayment of debts, alongside the continuation of the company's business activity."

In conclusion, they said: "The company is acting and will continue to act in full cooperation with the court and the authorized bodies, in order to reach an optimal settlement and return operations to their regular course."